Under Michigan contract law, which element is required for a real estate purchase offer to become a binding contract upon acceptance?
Correct Answer
D) The offer must be in writing, signed by the buyer, and communicated to the seller
Under Michigan's Statute of Frauds (MCL 566.108), contracts for the sale of real property must be in writing and signed by the party to be charged to be enforceable. A valid offer requires a written document signed by the offeror (buyer) and must be communicated to the offeree (seller) to be capable of acceptance. These are fundamental requirements for contract formation in Michigan real estate transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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